The procedure of transferring journal entries to the ledger accounts is called Posting.
Importance of Posting
In the recording process, posting accumulates the effect of journalized transactions in the individual accounts. Without posting any account is not prepared. So posting is the essential step in the recording process.
Steps of Posting
Posting involves the following four steps:
(1) In the ledger, to enter in the appropriate columns of the account(s) debited the date, journal page, and debt amount shown in the journal.
(2) In the reference column of the journal, to write the account number to which the debt amount was posted.
(3) In the ledger, to enter in the appropriate columns of the account(s) credited the date, journal page, and credit amount shown in the journal.
(4) In the reference column of the journal, to write the account number to which the credit amount was posted.
